Bank of Industry (BoI) and the Sokoto State Government have signed an agreement to float a N2 billion-matching fund for onward lending to small enterprises in the state.
The acting Managing Director, BoI, Mr. Waheed Olagunju, said under the partnership, both parties would be required to provide N1 billion each for lending to entrepreneurs.
The financing deal, which was sealed on Wednesday night, came as the bank earlier commissioned its Sokoto office.
Speaking during the signing of the Memorandum of Understanding (MoU) between both parties, Olagunju said the financing model of fund-matching had become necessary against the backdrop that the bank could not solely finance industries in the country without collaboration with the states which are the custodians of lands.
Already, the bank currently had a subsisting matching funds deal with 18 state governments across the country.
He further revealed that the bank had so far disbursed N1.6 billion to 25 industrialists in the state.
He added that as part of the strategies to deepen it credit delivery process in the state, the bank had commenced product programmes that were targeted towards funding projects in the 40 identified products.
He said: “We look at our mandate of transforming Nigeria’s industrial landscape and we realise that we cannot do it alone. Finance is just one of the factors of production. There are other things that needed to come into the fore before we can support entrepreneurs across the country.
“Entrepreneurs are located in the states. They must have a piece of l and before they can do business. And under the Land Use Act, land is vested in the governors. That makes partnership with the state governments an indisputable part of our business.”
Olagunju said the bank had identified seven clusters which would be accorded priority financial support in the state.
These, according to him are groundnut oil, animal feeds, leather …Read More
Source:: Nigerian Pilot